Golden Ocean Vs. Star Bulk Carriers: Latter Is Still A Better Buy
Summary
- The stock prices of Golden Ocean and Star Bulk have reached my previous targets. Now, I have new targets for the stocks.
- Comparing the asset turnover, expense ratio, gross margin, and adjusted EBITDA return on assets of SBLK and GOGL shows that Star Bulk is doing more efficiently.
- However, SBLK’s average age of operational fleet has increased from 9.3 years in 1Q 2021 to 10.1 years in 1Q 2022.
- On the other hand, GOGL is now the largest listed owner of large size dry bulk vessels, with an average age of approximately 6.4 years, including newbuildings.
- GOGL is still undervalued and has around 34% upside potential to reach $21.57. Star Bulk has an 85% upside potential to reach $59.24.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of SBLK either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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